- Report Post
- Posted: Tue, 24 Apr 2012 04:43:58 +0000
I'm not sure if what Bain is doing is in any way comparable to the invention of the automobile. If it shits like a horse, and all that.
Wasn't talking about Bain specifically. I'm referring to large scale economic progress and weeding out economic inefficiencies. Yes, Bain's market function is one of many tools of the free market to do that. And even Bain existing in the market is beneficial to us because it incentives companies' managements to self regulate and embrace efficient resource allocation.
The problem is, that's not always what happened. Apparently, they would do things that saved money in the short term, but might doom the company in the long run. The clear example was when they talked about how they skimped on maintenance. Sure, you can save some money in the short run if you don't take care of the equipment, make the company seem more profitable, but that doesn't actually benefit the company.
The clearest quote from the article, I thought, said something to the effect that they were trying to increase the companies profit, not it's output, or whatever. Sometimes those things coincide, sometimes they do not.